trading
calculators

To calculate your potential profits and losses:

1. Select the trading instrument you want to trade, such as EURUSD.
2. Enter the lot size. For instance, 0.1 lots equals 10 000 units of the currency.
3. Choose the currency you want the calculations to be made in, USD or EUR.
4. Set the leverage ratio, for example, at 1:100.
5. Enter the Ask and Bid prices or use the automatically provided market prices.
6. Click Calculate to get the required margin, contract size, point value, spread, and swap rates.

In our example, to open a EURUSD position with 0.1 lot and 1:100 leverage at the current market price, you need a margin of 100.91 USD.

Such calculations help you determine the best trading strategies and make well-informed decisions before opening a position.

Let’s see what each value in the calculation results means:

• Margin is the amount needed to open and maintain a trading position, helping you understand how much money from your account balance will be used.
• Contract size is the number of units of the trading instrument in your position. For example, one lot in Forex equals 100 000 units of the base currency, while 0.1 lot = 10 000 units (0.1 × 100 000 = 10 000).
• Point value is the amount of money you gain or lose if the price changes by one point.
• Spread is the difference between the Ask (buy) price and the Bid (sell) price. It represents the cost of entering the trade.
• Swap long and Swap short are the interest charges or earnings for holding a position overnight. “Swap long” applies to Buy positions, and “Swap short” applies to Sell positions.

Margin trading, or buying on margin, involves borrowing money from your broker to open a larger position than you could with just your capital. Instead of paying the total price of the trading asset, you only need to pay a percentage (the margin) while the broker lends you the rest.

A key concept in margin trading is leverage. Leverage is expressed as a ratio between the trader’s funds and the borrowed funds, such as 1:10, 1:50, 1:100, or 1:1000. It amplifies your funds, potentially multiplying your profits or losses on trades. For example, with 1:100 leverage, every $1 you invest turns into $100. So, if you deposit $100, you can trade as if you have $10 000.

To assist with this, our Trading calculator helps you determine the required margin for each trade. This allows you to figure out how much money you need to open a position and build an effective trading strategy.